Supreme Court Disposes Revenue’s Appeal Against TWI; Notes Assessee to Challenge Final Assessment Separately.


22 September 2025 Income Tax >> Tax Laws  

The Supreme Court has rejected an appeal by the Income Tax Department against Trans World International Ltd. (TWI) in their litigation, after observing that the assessee is keen to challenge the final assessment order before the competent appellate forum.

The Revenue's appeal questioned an August 14, 2024, judgment of the Delhi High Court that had set aside reassessment notices and orders made under Sections 148 and 148A(d) of the Income Tax Act, 1961. The High Court, on the basis of its previous decision in Fox Network, held that the reassessment action was meritless and noted that the bifurcation of revenue taken by the Assessing Officer was unsustainable considering the agreements on record.


 

 
 
 

Before the Supreme Court, counsel for TWI pointed out that although the High Court had quashed the reassessment notices, it permitted the assessment proceedings to continue, subject to final orders. Consequently, a final assessment order has since been passed. The company’s counsel submitted that the assessee now proposes to challenge this order on its individual merits, rather than on reopening grounds previously argued before the High Court.

Recording this observation, a Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan ruled that no useful purpose would be served in pursuing the Revenue's appeal any further. The Bench accordingly disposed of the case, reserving the assessee's right to challenge the final assessment order through the appropriate appellate process.


Section 148, Income Tax Act - 1961  

Income Tax Act, 1961